Department of Energy Furnace Mandate is Suspended

If you have seen a flyer or advertisement warning of a federal government mandate that could lead to costly furnace replacement after May 1, 2013 you can relax; that mandate has been withdrawn by the DOE.

In 2011 the U. S. Department of Energy (DOE) passed a "Direct Final Rule" that was to have been effective May 1, 2013. That rule required any new furnace installation in the "Northern region" which includes Illinois to be 90% efficient (90% AFUE). However, in the Southeastern and Southwestern regions an efficiency of 80% was required. 

On January 11, it was reported that a settlement was filed in which the Department of Energy (DOE) agreed to withdraw the pending minimum energy conservation standards that included these new regional standards. This was a suit in the United States Court of Appeals for the District of Columbia. The suit was by the American Public Gas Association (APGA) and the Air Conditioning Contractors of America (ACCA).  

In the settlement the DOE agreed to initiate a new rulemaking for minimum energy conservation standards for residential furnaces. The DOE also agreed to allow stakeholders the opportunity to comment.

The portions of the Direct Final Rule which set new minimum energy efficiency standards for central air conditioners and heat pumps, including any regional standards, remain unchanged and the compliance date will be January 1, 2015.

The settlement requires ratification by the court, which was reported as being only  a formality. 

What does this mean for home and unit owners? Higher efficiency standards for furnaces are coming, but they won't be here for a while.  

Comments: 

• What was the problem, you might ask? 

For one thing, if the new standards had gone into effect on May 1, 2013 homeowners and condominium unit owners could have been faced with costly modifications to install new vent piping for the high-efficient furnaces. At BLMH, our existing furnace vents are unsuitable for use with 90% Annual Fuel Utilization Efficiency (AFUE) furnaces.  These new high efficiency furnaces are sometimes called "condensing furnaces" and they have special venting and condensate requirements. 

Some also voiced the concern that homeowners might choose to repair an older furnaces rather than replace. This was considered a safety issue.  There was also a concern that homeowners would choose such inefficient methods, rather than upgrade to a new federally mandated furnace. This could actually lower the efficiency of the furnaces!

• What's a condensing furnace? 

Furnaces with efficiencies of 90% or greater extract so much heat that water vapor will condense in the exhaust. In other words, the temperature of the exhaust is below the dew point of the gasses. That condensate is acidic and so the furnaces must be designed to avoid the corrosion which would occur if this condensate is in contact with metal parts. That condensate must go to the sewer via a drain line. In some cases, a pump may be required to remove this accumulated condensate.  

Condensing furnaces are more complex. A major difference is a dual heat exchanger. The basic ignition and gas firing systems are not that much different from a standard furnace. The big gains come from that second heat exchanger. Condensing furnaces include a draft inducing fan for combustion, a plastic condensate discharge line, and ABS or PVC plastic vent line. The furnace may also require a second vent line to bring fresh air for combustion into the furnace. 

Both the fresh air inlet vent and the combustion discharge vent are usually via plastic pipe through the sidewall of the home.  The higher efficiency results in lower vent temperature. That's why plastic pipe can be used. 

If a furnace can't be vented through a wall, then additional blowers and liners may be required. Of course, any additional blower for venting will use electrical energy. Such energy consumption reduces the effective efficiency and raises the installation cost and the annual energy cost for the homeowner. 

• How much will I save with a new furnace?

Here as an example are some rough numbers, which are based on a house situated in a colder climate. The operating costs include both electricity and natural gas:
60% furnace = $1,316 per year energy costs.
80% furnace = $1,014 per year energy costs.
91% furnace = $   913 per year energy costs.

So how much could I save if I replaced my 80% efficiency furnace with one that's 91 or 93% efficient? Answer: $1,014 - $913 = $101 annual energy savings per year. 

Of course, this doesn't include the cost of air conditioning. 

• Does this make sense? 

In the example above, if the furnace was 60% efficient, an 80% furnace could save about $300 in energy costs per year. That would probably pay for the furnace in 10 years. Modern furnaces with dual stage blowers have additional advantages. 

In the same example, if we compare an 80% efficiency furnace, then going through the expense to upgrade to a new 90% furnace could reduce energy costs by $101 per year.  

• Are there alternatives? 

Yes.
Older furnaces may not have a set back thermometer. These are available for $25 to $50 and allow setting difference heating and cooling temperatures based on the day of the week and time of day. To reduce energy consumption, comfortable temperatures are set when the home or unit is occupied. However, at night in the winter the temperature is lowered. 

A homeowner with an older furnace can install a new 81% efficiency furnace with two stage gas valve and a variable speed blower motor. These have been demonstrated to use less energy. On milder days, the furnace will come on at the lower gas setting and air will be circulated by the variable speed blower. This not only uses less energy, this type of system is quieter than the single speed alternatives.  Such a furnace can be matched with a more efficient air conditioning condenser.  Using this approach can add about 20% to the cost of a new furnace and air conditioner set.

• How long will my furnace and air conditioner last?

According to a study by Consumer Reports, home furnaces usually last between 13 and 20 years. Most will have a lifespan of 15 years. Their website currently lists 18 years for gas warm air furnaces and 15 years for central air conditioners.

The National Association of Home Builders (NAHB) has published a report that gas furnaces can be expected to have a lifespan of 18 years and in-place air conditioning equipment 15 years. InterNACHI, the International Association of Certified Home Inspectors says that a  furnace can last 15 to 25 years and a central air conditioner 7 to 15 years. 

Put all of these together and we get an average lifespan of:
Gas furnace = 15 to 21 years. 
Central air conditioner = 11 to 15 years.

Many manufacturers provide a 10 year warranty for their furnaces and central air conditioning compressors.  That would seem to indicate what the manufacturers expect this type of equipment to last without significant failure (blower, electronics and controls, compressor components).

• How often do we use our furnaces in Wheaton?

Here in Wheaton, IL our median monthly temperatures, which fall between the average low and average high are shown below. In brackets [xxx] the average high temperatures are also shown for warmer months, and the average lows for cooler months. Heating and cooling equipment will operate in these ranges:

January = 22.5 F [15 F]
February = 26.5 F [18 F]
March = 37 F [27 F]
April =  48.5F [37 F]
May = 58.5 F [46 F]
June = 68 F [80 F]
July = 72 F [83F]
August = 70.5 F [81 F]
September = 63 F [75F]
October = 51.5 F [40F]
November = 39 F [30F]
December = 26.5 F [19F]

• What is SEER?

The SEER or Seasonal Energy Efficiency Ratio is a number that describes how well air-conditioning equipment works. A higher SEER means better efficiency and lower energy costs. "SEER is calculated by dividing the amount of cooling supplied by the air conditioner or heat pump (Btu’s per hour) by the power (watts) used by the cooling equipment under a specific set of seasonal conditions." SEER ratings are determined under laboratory conditions using criteria of the Department of Energy. Each piece of cooling equipment is evaluated using the exact same conditions. 

For central air conditioning units, it's been reported that properly installed and sized equipment with a higher SEER number can lower energy costs about 60%, To achieve this all duct joints must be tight, there must be proper airflow, the refrigerant must be charged correctly and the equipment must be properly sized. 


Notes:
1. Individual owners will have to do their homework to determine their possible energy savings. My rough numbers assume certain gas and electricity costs, and will vary from location to location. Climate certainly will have a major impact on use of the furnace, and the more hours per year a furnace is operating, the greater the possible savings. 
2. Temperature data per the Weather Channel website.